Strapped for international currencies, Iran is turning to cryptocurrency to allow imports to continue to flow.
- Citing an article from The Islamic Republic News Agency (IRNA), Iran Daily reported earlier this week the country’s cabinet has amended recent legislation on digital assets to allow cryptocurrency to be used for import funding by the Central Bank of Iran (CBI).
- The amendment had been jointly proposed by the CBI and the cabinet previously.
- The change means legally mined cryptocurrency in Iran can only be exchanged if used to fund imports from other nations.
- Miners will supply the cryptocurrency directly to the CBI within an authorized limit, per IRNA’s report.
- This would be based on how much subsidized energy a miner uses, as well as instructions to be published by the Ministry of Energy.
- Cryptocurrency has become increasingly important in Iran as the nation suffers from economic woes brought by U.S. sanctions and the coronavirus pandemic.
- Mining was legalized last year, however the industry is heavily regulated by the government making it a tough jurisdiction in which to operatate.
- Iran Daily suggested that using bitcoin (BTC, -0.90%) for import payments could help the nation avoid sanctions that impose limits on Iran’s access to the dollar.
October 29, 2020, Published on COINDESK